AGRI3 and HSBC India announce Partnership Agreement
AGRI3 Fund and HSBC India announce Partnership Agreement for Agri financing, commencing with partial guarantee for USD 50 million MFI lending program
On Tuesday April 16, 2024, Ajay Sharma, MD & Head – Commercial Banking, HSBC India, and Bob Assenberg, AGRI3 Board Member signed a Partnership Agreement in the presence of the Consul General of the Netherlands in Mumbai, Mr. Bart de Jong and Hitendra Dave, CEO, HSBC India. Under the Partnership Agreement, AGRI3 will provide partial guarantees to HSBC for transactions that have a positive impact on sustainable agriculture, rural livelihoods, and forest protection. This ceremony took place as part of a roundtable event where Microfinance Institution (MFI) clients of the bank were invited to discuss sustainability challenges and opportunities.
With the first transaction under this new partnership, AGRI3 will provide a partial guarantee for a facility of USD 50 million for the MFI Lending Program, enabling HSBC to provide loans to MFIs whose end borrowers will utilise the financing for agricultural and agri-allied activities.
The program is supported by a technical assistance programme managed by IDH, The Sustainable Trade Initiative and executed by MicroSave Consulting which will support the participating MFIs to explore opportunities and develop products and services that can enhance the environmental sustainability of the agricultural activities of their clients by adopting climate smart agricultural practices, predominantly for women in rural areas.
Following this agreement and the initial transaction, HSBC and AGRI3 will work together to further deepen this relationship to support corporate and NFBC-MFI clients of the bank.
Hitendra Dave, CEO, HSBC India said, “We are pleased to partner with the AGRI3 fund to improve formal credit penetration in India’s agriculture sector. At HSBC, we recognise it’s important for us to work on projects that can drive positive change across communities.”
Bob Assenberg, AGRI3 Board Member stated, “We are excited about this partnership with HSBC India. We see tremendous opportunities in India, due to the close client relationships that the Bank has with MFIs, such as those present during the roundtable. AGRI3 will have the opportunity to expand and enhance the impact that financial institutions can make to promote climate smart production and improved rural livelihoods in the Indian agricultural sector which is predominantly built up of small-holder farmers.”
About HSBC India – The Hongkong and Shanghai Banking Corporation Limited in India offers a full range of banking and financial services through 26 branches across 14 cities. HSBC is one of India’s leading financial services groups, with around 42,000 employees in its banking, investment banking and capital markets, asset management, insurance, software development and global resourcing operations in the country. It is a leading custodian in India. The Bank is at the forefront in arranging deals for Indian companies investing overseas and foreign investments into the country.
About AGRI3 Fund – The AGRI3 Fund was created by the United Nations Environment Programme (UNEP) and Rabobank, together with partners IDH and FMO, the Dutch Entrepreneurial Development Bank, to support the transition to sustainable agriculture. The Ministry of Foreign Affairs of the Netherlands is a donor to AGRI3 Fund and the Global Environment Facility, through Conservation International is a Senior Participant in the Fund. FOUNT and Cardano Development are the Investment Advisors for the Fund.
AGRI3 Fund aims to mobilise additional public and private capital globally and at scale. The Fund works with commercial banks, development finance institutions, impact investors and institutional investors and provides credit enhancement tools and technical assistance to projects which actively prevent deforestation, stimulate reforestation, contribute to efficient sustainable agricultural production and value chains and reduce carbon emissions and improve rural livelihoods.
For further information, please contact:
Maria-Pia Kelly
m.kelly@agri3.com
